Written By: Stacey Sprain
With fraud being such a hot button throughout the industry, it is imperitive that processors are aware of how to review the common elements of each loan file to catch and question any area of concern BEFORE fraud gets through the system.
One of the most important tools in the fight against mortgage fraud is the power of knowledge. Knowing and understanding what constitutes fraud and how to recognize it are key elements to fighting against it. That being said, there are some excellent tools available to processors that I highly recommend be taken advantage of-
Visit Fannie Mae's fraud page at https://www.efanniemae.com/utility/legal/antifraud.jsp to access a number of very informative fraud-related tools & educational resources that include access to free online seminars, classroom seminars, DU reference tools and matrices, current and archived copies of Mortgage Fraud Update which is FNMA's monthly newsletter on fraud, and FNMA's handbook Originating Quality Mortgages which outlines best practices for managing fraud risk and controlling file quality.
Freddie Mac also offers a number of helpful educational tools which can be found at their quality control and fraud prevention page at http://www.freddiemac.com/dgtq/. There you will find helpful handbooks addressing best practices and procedure suggestions for quality control and preventive fraud measures. Their guides offer some wonderful checklists that can be utilized in daily processing procedures to assure the delivery of quality loan files to the end lenders.
MGIC's Learning Center is another resource for an inexpensive cost effective web seminar called Fraud Detection. Their online session teaches you where fraud happens and how to recognize it. Go to http://www.mgic.com/education/etrain.html.
United Guaranty also offers an online fraud seminar called Advanced Fraud which can be requested through one's local account representative. UG's seminar summaries and link to account rep search engine can be found at https://www.ugcorp.com/trainingcoursedescriptions.html.
You will find many other miscellaneous fraud-related courses through other training sources
like Mortgage Training Institute, Loan Officer Training, Lenders One, Loan Processor Boot Camp, etc. but the sessions listed above are the most informative for the lowest costs. Fannie Mae and Freddie Mac'c sessions are all free of charge.
In part 4 of this ongoing Fraud Blog, we will discuss some specific examples of potential fraud that processors should know learn how to spot.
About The Author
Stacey Sprain - As an NAMP® staff writer, Ms. Stacey Sprain is currently a NAMP® member in good standing, and is a NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). With over 15+ years of mortgage banking experience, Stacey is also a Quality Control Manager for a major mortgage lending institution. If you would like to become a volunteer writer for us, please email us at: firstname.lastname@example.org.